Account Opening Process

We’re now at the stage where a customer has completed a credit application form and had a favourable credit score. The decision has now been made to open the customer account. The account opening process is quite simple but it’s important it’s done correctly so that you are setting the expectations on your customer. Important points in the account opening process include:-

• A letter confirming that a credit account has been opened. Confirmation of the credit limit in place and a note of the credit terms. It’s important that you constantly remind your customer of your payment terms to avoid them pleading ignorance.
• A phone call or letter to accounts payable to introduce yourself as the person who will be chasing payment. This phone call or letter may seem overkill but this can really help to build rapport and may be the difference between getting on this week payment run or having to wait!

Take this as an opportunity to confirm details with their accounts team and make sure you are aware of any procedures you have to follow such as getting a purchase order etc. Now that the account is opened make sure that invoices and statements are sent on a regular basis.

We have included below a link to a template account opening letter. As always these are in Microsoft Word format and are very easy to edit to your specific requirements.

Your customer is now a part of your normal credit control process which we will discuss over the next few posts